We are first time buyers in CT. Is this a good time to buy or should we wait?

Question

Prices are down, but we are afraid interest rates will go up if we wait too long. We would be ready to buy in March - is it wise to wait that long? Or should we try and buy now? Thanks!!

Answer 1

If you are not ready until March don't rush it. My agent (we live in Massachusetts) told us it was a good thing we hadn't bought yet and he said we should wait until mid-winter or early spring before we do. He said the market is falling, but hasn't hit bottom and unless it does before then...do not buy.

I dunno if it is the same in CT...but I would imagine it isn't too far off.

Good luck!

Answer 2

First of all the FEDs have nothing to do with the Interest Rates on your mortgage. They are sold on the open market as bonds. The feds can raise rates by 2% and mortgage rates could go down.

For example the FEDS havent changed anything over the past 3 months. Look what the Bond Market has done over the past 3 months. This is what mortgages are based on.

http://finance.yahoo.com/q/bc?s=%5ETNX&t=3m

To answer your question. Now is a good time. The reason being over the past month interest rates have been plummeting (the bond market is doing very well, nothing to do with the feds).

Its a buyers market, homes sales are way up, and values are way down. You should be able to get a good deal, with a very good rate. Go for a fixed rate. FHA if you can, 3 years from now you will have an FHA loan at a very good interest rate that can be assumed if they qualify. Say you have a 5% interest rate and 4 years from now rates are at 8%. They can have your 5% if they can qualify. Now imagine how much your house is worth.

If you dont have a down payment you could still go FHA, and use a program like HART where the seller gifts it to HART and they pay your downpayment and closing cost. All you need is 500 dollars of your own money that you dont need to spend.

Call 5 or 10 brokers if they dont know what Im talking about, keep calling.

Sorry for the long answer, just trying to teach you and cant do it in 2 lines.

Answer 3

"Financing Loans" is dead on here. If anyone tells you that the fed has a direct impact on Mortgage Rates, run.

As for timing in the market, any real estate professional has one saying: "In a good real estate market, always look to buy. In a bad real estate market, always look to buy".

Deals are for the taking all over the country. As long as you have a good, ethical real estate agent that's working hard to find you a great deal on a property that's right for you, there's never a bad time to buy. Timing is everything!

Let me give a quick example. You and your spouse start looking at homes today. You guys find the home of your dreams. It's layed out exactly how you want it in a school district that you like etc... etc... The seller isn't budging on his price. This frustrates you because everyone else seems to be giving away the farm for you to move in. You decide to pass and wait until March. You go out in March and see that the real estate market has begun its turnaround... BUT... there aren't as many deals out there and that house you fell in love with is long gone off of the market.

The most important part of buying a home is looking and looking and looking and looking... then look some more. Real Estate agents are paid quite nicely for what they do so make them work.

Another extremely important thing to know right now is that mortgage companies are continuing to either close their doors and those that will survive are making it much more difficult to qualify. If you are in the market for a home, dig in and buy.

I prequalified a buyer 1 month ago for 100% financing. They found a house this weekend. I can no longer offer the program they were qualified for only a month ago. now they have to come up with 5% down. I still have 100% financing, but it's going to become more and more expensive.

If you have further questions feel free to visit my website caseycasperson.com. My contact information is available there if you'd like to prequalify and see what's available to you.

Answer 4

I would take advantage of the lower prices now. Interest will only go up under positive economic conditions. It is currently a buyers market in most areas of the United States, and rates are still very good. Below is a website that is very informative and is designed for the consumer.

Answer 5

if you read the papers and listen to the media - this real estate down turn is only gonna get worse within the next 24 months. more foreclosures etc. i do not foresee interest rates shooting up in this downturn (but ya never know what the feds are gonna do).

my suggestion is to look around....there is alot of inventory out there ---and more everyday. maybe bid on a foreclosure...you may get a really good deal now. but look around, if you find something you really like and think you can afford it.. go for it ...

and do not sign up for an ARM (adjustable rate mortgage) loan. make sure you get a 30 year Fixed rate with no prepay penaltys.
that way you always know what your payment is.

good luck to you :)

Answer 6

Whether to buy now or wait is anyone's guess at this point. If you wait, interest rates might go up, but prices might go down.

Good luck.

Answer 7

HI ,
You should wait till the new year .

Rgds..............